In relation to the Income Statement and the Balance Sheet, define the Profitability Reasons, the reasons for the use or administration of the assets, the liquidity reasons and the reasons for the use or administration of debts and interpret their results. La Luz Abarrotera S.A de C.V. Statement of income from January 1 to December 31, 2015 Sales (credit) 5,000,000.00 Cost of merchandise sold 3,500,000.00 ____________________ Gross profit 1,500,000.00 Administration and sales expenses 300,000.00 ____________________ Utility operation 1,200,000.00 Interest expense 75,000.00 Extraordinary loss 300,000.00 ____________________ Net profit before taxes 825,000.00 Taxes (33%) 120,000.00 ____________________ Net profit 705,000.00 Balance sheet from January 1 to December 31, 2015 Assets Liabilities and Stockholders' Equity Cash 75,000.00 Negotiable values 60,000.00 Debts to pay 45,000.00 Accounts receivable 400,000.00 Documents to pay 330,000.00 ____________________ Inventories 390,000.00 ____________________ Total current liabilities 375,000.00 Total current assets 925,000.00 Long term passives 400,000.00 ____________________ Net plant and equipment 950,000.00 ____________________ total liabilities 775,000.00 Net assets 1,875,000.00 Common capital 500,000.00 Retained earnings 600,000.00 ____________________ Total Liabilities and Stockholders' Equity 1,875,000.00 With the data from the following Income Statement, determine everything studied in the Cost Volume Profit Analysis and interpret its result: El Escorpin S.A de C.V. Income Statement as of December 31, 2015 Sales revenue (volume, 300,000 units x $ 20) 6,000,000 Less variable costs: Direct material 975,000.00 Direct labor 1,025,000.00 Indirect manufacturing costs 400,000.00 Administration costs 150,000.00 Distribution costs 375,000.00 ____________ Total variable costs 2,925,000.00 ____________ Contribution margin 3,075,000.00 Less fixed costs: Indirect manufacturing costs 850,000.00 Administration costs 650,000.00 Distribution costs 600,000.00 ____________ Total fixed costs 2,100,000.00 ____________ Utility 975,000.00 Unit Variable Cost = $ 15 Fixed Costs = $ 2,100,000 Unit Sale Price = $ 20hola